Understanding how term to maturity impacts interest rates is crucial for your investment success. This fundamental connection influences everything from your portfolio returns to risk management strategies. As you delve into this guide, you'll
Fixed-Income Investing
Why Would You Pay More Than Face Value for A Bond?
As a fixed-income investor, you might encounter situations where you're willing to pay more than the face value (par value) for a bond. This seemingly counterintuitive decision arises when prevailing interest rates decline, making existing bonds with
Understanding the Riskiest Bond Rating: A Guide for Fixed-Income Investors
Major credit rating agencies, such as Moody's, S&P Global, and Fitch Ratings, assign the riskiest bond rating, a "D." This rating serves as a stark warning signal for bond investors. It signifies that the bond issuer is either already in default
Can You Lose Money on Bonds if Held to Maturity?
The fixed-income market offers stability through predictable income streams and the return of principal at maturity. However, you need to understand that holding bonds to maturity doesn't guarantee freedom from losses. While most bonds return
Accrued Interest: Understanding This Crucial Concept for Bond Investors
Accrued interest represents the portion of the next coupon payment that the previous bondholder has earned but has not yet received. Imagine buying a bond between coupon payment dates. You're acquiring a portion of the interest the previous owner has
Advanced Bond Investing Strategies: Beyond the Basics
Beyond the foundational principles of bond investing, several advanced strategies can help you optimize your returns and enhance your portfolio's performance. This article will explore key strategies such as tax-efficient investing, strategic bond